Finance Ministry

Old bank notes now valid till 14-11-2016 for specified payments. Earlier, time limit was 72 hours ending 11-11-2016

Old bank notes now valid till 14-11-2016 for specified payments. Earlier, time limit of 72 hours ending 11-11-2016 was prescribed for using 500-1000 notes.

Ministry of Finance

Press Release

11-November, 2016

Government extends existing exemptions with rergard to cancellation of the legal tender character of the existing series of high denomination bank notes of Rs.500 and Rs.1,000 denominations until the expiry of 14th November, 2016, with certain modifications / additions to the existing exemptions; Governments reassures that there is enough cash with RBI and Supply of cash to Bank branches and ATMs are being stepped up gradually.

While cancelling the legal tender character of the existing series of high denomination bank notes of Rs.500 and Rs.1,000 denominations w.e.f. the expiry of the 8th November, 2016, exemptions were allowed for certain transactions for the first 72 hours with a view to minimizing inconvenience to the public.  Subsequently, based on feedback received from various quarters, certain more transactions were included for exemption.

The Government has been closely monitoring the implementation of the decision.  Considering various representations received from different quarters in the matter, it has now been decided that the existing exemptions may be extended until the expiry of 14th November, 2016, with the following modifications / additions to the existing exemptions:

(i)  Payment for court fees will be included in the exemptions.
(ii) The ID proof of customers will be required for transactions in consumer cooperative stores.
(iii) Payments towards utility bills will be restricted to only individuals / households for arrears and / or current bills.  No advance payments will be allowed.
(iv) Payments in toll-plazas of the State and National Highways will be deleted  from exemptions, considering that the Ministry of Road Transport and Highways is separately issuing instructions in this regard.

There is enough cash with RBI.  Supply of cash to Bank branches and ATMs are being stepped up gradually.

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DSM
(Release ID :153548)

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